Business Plan

UTA Marketing, Inc. 701 S Nedderman Dr, Arlington, TX 76019

Presenters: Virginia Bartin, Logan De Groot, Samir Hachem, and Yash Patel

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 1

Executive Summary 3

Current Marketing Situation 4

Market Description 5

Product Review 5

Competitive Review 6

Distribution Review 8

SWOT Analysis 9

Objectives and Issues 10

Marketing Strategy 11

Positioning 12

Product Strategy 12

Pricing Strategy 13

Distribution Strategy 14

Communications Strategy 15

Marketing Research 16

Marketing Organization 17

Action Program Metrics 17

Pro Forma Budgets/Financials 18

Additional Controls 18

References 19

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Executive Summary

Comerica, one of the largest banks in the US, offers a multitude of banking services.

These services involve three different branches: business banking, personal finance, and wealth

management. The financial industry has experienced drastic change in the past few years, with

the instability in the market due to the pandemic to the volatility caused by reddit forums.

Technology is also rapidly advancing, and Comerica needs to keep up with the times and adapt

to market trends. The banking and finance industry is slowly shifting to cater online services

which Comerica is behind on. With the technological advancements Comerica will reach a new

market, however, they must try to educate and push their current market into this new way of

banking. In this marketing report, we suggest potential avenues to explore in the advent of these

drastic changes in the marketplace and how they can gain a competitive advantage in the market.

By offering more investment in technology they can create a new look to their app and online

banking as well as establish a standing in new trends such as Crypto. They are also in need of

investing in a personalized and consistent communication strategy when training employees and

relationships with customers, to grow their brand awareness and gain trust with established and

new customers.

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Current Marketing Situation

Comerica Bank is one of the leading banks in the United States. It is centered around the

arrangement of reasonably affordable financial help to their clients. The progressions in the

financial sector have driven the formation of new contenders that undermine the long-standing

performance of the bank. The capacity of the bank to hold its position is dependent upon the

capacity to convey its seriousness, competitiveness, and benefits that will be provided to the

customers from the use of Comerica's services. It ought to likewise have the option to look at its

execution of strategy with that of different banks in the area and show their distinction. New and

inventive products additionally must be included for the promoting all together for the bank to

come up with the best deals. Inventive products ought to make value for the client so the

individual in question will actually want to stay in the commercial bank as opposed to moving to

the newer banks. The manner in which the bank position itself will decide the progressions that it

has a triumph in the area. This showcasing plan is to reaffirm the position that the bank at present

possesses. The prospects that are introduced by the coming of the web and versatile banking

should be used to guarantee that the extent of activity of the bank is held. The endurance of any

bank is subject to how it will take up the financial innovation and coordinate it into the typical

frameworks that make up its legacy. Comerica bank is centered around the coordination of the

advancements while holding the client support that makes up its legacy.

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Market Description

The financial business all around the world is confronted with the reputational harm that started

in the worldwide monetary crisis. A harmed notoriety has prompted the improvement of

passionate promoting efforts focused on the rebuilding of the public confidence in the bank and

the powerful advancement of more steadfast client bases. Client center focus has been taunted as

the only hope these banks have is to secure their clients first before they are reeled into different

banking institutions (Client driven tasks must be planned by unique necessities of the clients.)

The fate of the financial businesses is reliant upon the capacity of the individual banks to address

the issues of the clients. The intricacies of the client's needs have made it vital for the banks to

fully prepare for the improvement of new tools that facilitate the comprehension of the clients.

All banks should think of the frameworks that foresee client needs and meet them in the best

way. Banks that won't fulfill the standard needed by the clients won't be functional since the

danger of going bankrupt from their rivals will definitely increase drastically.

Product Review

Comerica offers several financial services including corporate banking, personal finance, and

wealth management. Corporate Banking Products and Services include Cash & Investment

Management, Capital Structure, and Employee Benefit Solutions & Services. Cash and

Investment Management services include cash management, access to the online money market

portal, active investment management, and passive investment management. Capital Structure

services include investment banking, debt capital markets, equity capital markets, and corporate

buybacks. Employee benefit services include retirement plan consulting, passive investment

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services, custody services, securities lending, insurance for business, collective investment funds

(CIFs), and captive insurance. Personal Finance products and services include IRAs, Education

Savings (529 Plan or Coverdell Education Savings Account), and Brokerage Services. Comerica

also offers checking and savings accounts, web and mobile banking, and credit cards. Wealth

management services include developing a comprehensive wealth plan that optimizes individual

investments to a more “strategically integrated plan” (comerica.com). Comerica offers wealth

expertise, customized lending, credit cards with rewards, and banking solutions. Comerica does

not currently offer the trading of cryptocurrencies, but offering the option in the future could

provide a competitive edge.

Competitive Review

Comerica’s largest competitors are a mixture of large and smaller financial institutions. Many of

the larger banks focus much of their business on already established corporations, leading them

to neglect other business opportunities and not meeting the needs of the market.

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1.) Wells Fargo’s current assets are 1.77 trillion and they currently have more branches than

any other bank in the US, and they are the 3rd biggest American bank. They offer mobile

and online banking, and have just introduced a savings app in an attempt to appear to a

younger market. They focus on deepening relationships with their customers, success

within their operations and sound risk management. “Wells Fargo’s competitive

advantage stems from cost advantages and customer switching costs in its core banking

operations--which provide a vast majority of profits--and switching costs and intangible

assets in wealth management.” (Compton) In an attempt to increase their revenues they

introduced and “introducing ill-conceived incentive programs for front-line employees”

and they are in the midst of needing to mend relationships and gain trust again within

their market. (Compton)

2.) Bank of America is the second largest bank in the US currently serving about 66 million

customers with assets of $2.32 trillion. Their biggest advantage in the market is their

focus on innovation and ability to offer technology that enhances their customers' online

experiences. (Compton) Their target market is rich individuals as well as large

enterprises.

3.) Charles Schwab just recently bought TD Ameritrade, and is an image of where the future

of banking is headed. Though they are not currently at the top of the banking industry,

their advancement in technology and investment in Crypto, could put them in a position

to be a major threat to Comerica. They are a reminder in the market that things are

progressing and companies have to stay on top of their technology in order to stay in

competition.

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Distribution Review

Comerica primarily uses branch banking, where all banking operations are carried out in one

building. Comerica also utilized mobile banking, ATMs, self-service banking, and internet

banking as the main distribution channels. With branch banking,

customers can have all of their banking needs taken care of at one

location. Mobile banking services allow customers to utilize the

Comerica banking app and text banking to easily manage their

account. This app is readily available on the Apple app store,

Google play store, and many other platforms. The app averages

2.5 stars on the app store, so Comerica needs to develop an

updated and more user friendly platform. Automated Teller

Machines (ATMs) also allows 24 access to funds. Comerica can

provide the following services by using ATMs: cash withdrawal,

cash deposits, balance enquiry, providing mini statements, deposit

cheques, and fund transfers. Self-service banking also provides

maximum convenience for

customers, where

customers can perform

routine banking functions

at home.

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SWOT Analysis

STRENGTHS

● Establishing dominance in cutthroat market with in fact their use of people centric strategies

● Strong Distribution Network, that allows the company to tap into and reach the majority of the potential market.

● Highly diversified clientele, and employee base to represent their customers, which in tale gives a slight immunity in hostile times of banking.

WEAKNESSES

● Comerica has great products and also great sales, the problem is the marketing of the products. Its situating and one of a kind selling suggestion isn't clearly characterized which can prompt the attacks in this category from the contenders.

● R&D in comparison to competitors and growing players in the market place is beyond dwindling. Comerica spends above the national average for R&D but yet does not see any sort of outrageous Innovation.

● Online presence/website

OPPORTUNITIES

● New technology and government free trade opens up doors for comerica to venture out into emerging markets.

● With newer technology COMERICA can also open up doors to differentiated pricing in the existing cutthroat market entail growing the market dominance.

● With Cash in reserves and free cash flow, the doors open to investments through new products, services and new technologies.

THREATS

● Newer and better technologies developed by the competitor would bring serious threats to the industry in the mid to long term of the financial future of COMERICA.

● Shortages of the knowledgeable workforce in some global markets may be a cause of threat to steady growth of profits for Comerica of the markets in talk.

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 9

Objectives and Issues

Comerica’s main issue is keeping up with competitors in regards to their online banking, social

media presence, and marketing strategies. Comerica has little to no social media presence and

lacks a virtual community. Competitors are established on platforms such as Instagram, Twitter

and LinkedIn with a follower count of at least 100k to around 500k. Comerica has around 2000

followers on each of these platforms and has not been verified on any of them. This is an issue

because Comerica is not taking advantage of these free platforms where they can share valuable

information and invite new clients.

The next issue Comerica is facing is their outdated fintech; their dashboards, websites, and

applications are dull and uninviting. The banking industry is shifting to cater online services

rather than services provided in physical locations. Competitors' banking apps and websites are

much more inviting, aesthetically pleasing, and user friendly. Lastly, Comerica's main marketing

strategy is word of mouth; Comerica has a refer a friend special where when you invite a friend

and they set up an account you both get $50. Other than that Comerica uses old marketing

techniques that aren’t as effective as today.

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Comerica’s objectives are to fix their web and mobile banking and their social media/online

presence. Comerica can set aside a budget to hire new fintech, social media, and marketing

teams. These teams must be able to fit Comerica’s core values and also revamp and modernize

Comerica’s overall brand. Another objective for Comerica is to understand and monitor the

crypto currency market, as it is a new and growing market with potential in the future.

Marketing Strategy

Comerica for the most part since the creation has always been more word of mouth than

anything. Getting into crypto will bring much needed capital to the company. Getting the

customer base and or educating the already comerica clientele is the main struggle. To combat

this, they should use ads to promote as a way of attracting the needed customer base and also

using the word of mouth of the service to attract the already veteran clientele of COMERICA.

Taking a deep dive into the ad sense of comerica we've realized it's very unattractive and just not

of this generation which is the best way of putting it. The most significant strategy would be to

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 11

get the employees well trained on the crypto aspect and getting newer employees who are well

trained and licenced on the crypto field to also train the already veteran employees on

blockchain. The basis of this is as if you are going to invest with me but I as a banker offering

crypto am not able to explain what it is and how it works, then the investment is just not fruitful,

and you as an investor will not find the need to invest in the field.

Positioning

Comerica ranks 36 for total assets under management and is one of the largest commercial banks

in the US (mx.com). Comerica differentiates itself through wealth planning by offering a variety

of services. These services include strategic wealth planning for wealthy individuals, families,

and high-net-worth business owners. This strategic wealth planning process includes planning

the estate settlement process, wealth preservation, giving back to the community, special needs

trusts, and management of financial assets. Comerica helps affluent clients with strategic asset

allocation for long term investments. Because other banks have started to implement trading

cryptocurrencies, Comerica could position crypto as an investment for the future.

Product Strategy

Because the financial world has experienced immense change in the past few years, Comerica

needs to keep up with the times and implement cryptocurrency as a part of strategic wealth

planning. Comerica could offer wealth management clients with higher risk tolerances the

option of trading cryptocurrencies. This would involve implementing an extensive employee

training program, in order to provide consumer education and establish trust with the client.

Crypto is becoming a clear choice for investors building a “long-term portfolio”, with many

experts recommending holding “5% to 15% of your portfolio in high risk assets like bitcoin”

UTA Marketing, Inc. 701 S Nedderman Dr Arlington, TX 76019 12

(Reinicke). Over the past 10 years its on record that bitcoin and many other cryptocurrency

assets have outperformed the S&P 500 and leads with a 9,150,088% return in the past 10 years,

investing $100 dollars 10 years ago would have you sitting at $10,000,000 now.

"HowMuch.net, a financial literacy website"

Pricing Strategy

Comerica uses a market based pricing strategy; Comerica’s accounts’ fees and thresholds are

similar to competing banks. Checking accounts range from their Access, Rich Rewards, Premier,

and Comerica Platinum Circle Checkings. The Access checking has a $13 monthly service fee

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and target balance of $1000, Rich rewards has an $18 service fee and $5000 target balance,

Premier has a $22 service fee and target balance of $7500, lastly the Platinum Circle Checkings

has no service fees but has a target balance of at least $50,000. Each account has their own

benefits such as interest rates, free products, rewards, and of course ways to waive the monthly

service fee. For the first 12 months, users of Comerica’s web banking will be free, after which

there will be a monthly fee of 6.95. With the roll out of Comerica’s new online banking platform

Comerica should keep the monthly fee however waive fees monthly based on the amount of

activity on their platforms. If clients use their online/mobile banking at least five times a month

the fee shall be waived.

Distribution Strategy

Comerica utilizes many distribution channels to deliver banking services. New technology needs

to be implemented in these channels to enhance the customer experience and improve current

systems. Comerica needs to get with the times and update their mobile app. After revamping the

mobile app, Comerica should promote the convenience factor and establish trust with potential

clients with social media campaigns and advertisements. Offering cryptocurrency would also

give Comerica a competitive edge in the marketplace, and partnering with a platform that

provides cryptocurrency would be advantageous to Comerica. For example, if Comerica partners

with coinbase, customers could purchase cryptocurrency in Comerica’s online wealth

management online portal. In order to do this, Comerica would need to implement extensive

employee training programs. These programs would allow employees to communicate the long

term benefits of investing in crypto and provide adequate consumer education. Partnering with

coinbase would give Comerica a revitalized image, and position the firm to deal with the

demands of the future.

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Communications Strategy

The financial industry is incredibly competitive because it is a market in which there is an

established need for and everyone banks with someone. It is important for all banks to keep in

mind as their company “modernizes and transforms, ensuring each customer interaction offers

value by adhering to the essential attributes of providing quality, personable, and actionable

guidance communications.” (Beatty) Comerica needs to quickly build more brand awareness and

this can be done through advertisements, social media presence, personal relations, strategic

locations, etc. Comerica bank wants to focus on a communication strategy that is customer

oriented and building trust between their business and the customer. This can be best achieved

through “timely and meaningful communications with customers” fully transparent and

personalized for each person. (Beatty) It will benefit Comerica greatly to ensure that they have

communicated to their customers that they can offer them what they need, and that they are truly

trustworthy and then really push them to do banking with Comerica. With the introduction of

Crypto into our business we need to also ensure we have intentional training with our employees

and know that they are confident so they can ensure they communicate effectively with

customers and gain their trust when it comes to this new form of banking. Having a celebrity

endorsement, or a face of their company, someone like Mark Cuban, would raise awareness of

Comerica as a strong competitor in the industry and attract more customers. They could also use

smaller influencers such as financial help Youtubers or bloggers that are also in the industry and

knowledgeable about new technologies such as crypto to also build up customers' trust in the

industry.

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Marketing Research

To ensure the roll out of the new online and mobile interface is effective, Comerica must do

extensive market research. The first method of this will be requesting a rating on the Apple App

or Google Play store. Currently on the app stores Comerica has an average of 2.5 stars, which is

terrible. Comerica should monitor their rating and listen to the reviews given. Comerica should

also monitor which clients enroll in online banking and consider their demographics. This will

give Comerica a better understanding on who is open to their online services and who isn’t. That

way Comerica can then focus on those who aren’t open to online banking and figure out the

reasons why. Next Comerica should track what services are being used the most, they can do this

by tracking the usage of a given

service. For example monitoring

how often Comerica’s clients

send and receive money with

zelle. Tons of customers send

money with zelle, so it would be

important to have that feature on

the app and conveniently

located.

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Marketing Organization

Comerica utilizes a customer-oriented organization structure. In order to execute the

previously mentioned marketing activities, Comerica needs to put the customer first and help

customers meet their goals. One of the most important things to implement this approach is

providing excellent employee training. If employees believe in the benefits of the products

Comerica offers, the employees can provide consumer education and establish trust with the

customer. To implement new programs involving the trading of crypto and development of a new

mobile app, employees need to be properly educated on how to use these new platforms.

Understanding the customer is also integral to execute these marketing activities, which can be

done through extensive market research and listening to the customer. This also provides

incredibly useful feedback for Comerica to continually improve these programs and keep up in

the ever changing financial world.

Action Program Metrics

● Quarter 1, 2021: Work on internal analysis, building up a new brand, focus on the future

and developing their technology, building a culture up with their employees/training and

ensuring all employees are educated on all changes to help guide customers.

● Quarter 2, 2022: Roll out revamped app to DFW area for testing. Increasing their online

presence with social media marketing campaigns. Focus on making the website and app

more user friendly.

● Quarter 3, 2022: Celebrity endorsement to boost image, give Comerica a face, and

portray Comerica as more “leading edge”.

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● Quarter 4, 2022: Launch the revamped Comerica banking app and introduce viewing of

Crypto in the wealth management portal.

Pro Forma Budgets/Financials

Comerica will have to make a large financial commitment to hire the appropriate teams needed

to help with the rebrand, because of this we will set budgets on how much we can spend a year

on our teams. For app developers, our annual budget is no more than $600,000. For our social

media marketing team our annual budget is $400,000. Lastly our annual budget to hire a new

marketing team will be $1M. Total this plan will cost Comerica roughly $2M for the entire year.

With that being said these costs are rather rising on a year to year basis, so commitment is

needed, nonetheless the time and effort.

Additional Controls

With all of these changes Comerica must add additional controls to ensure they are following the

plan. Comerica will monitor customer satisfaction when it comes to feedback regarding online

and mobile banking. Comerica will also need to monitor budgets and spending. Lastly, Comerica

will need to monitor product and marketing development. After hiring the new marketing and

development teams, Comerica should have a steady increase in production and with the

monitoring of engagement through ad sense and incorporating this information with revenues

Comerica’s marketing team will have the insights to which they either increase advertisement

budgets or decrease.

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References

Beatty, Andrew. (2019, March 14). Banking modernization: Is it a communication breakdown? Finextra Research. https://www.finextra.com/blogposting/16810/banking-modernization-is-it-a-communicatio n-breakdown.

Compton, E. (2019, February 6). Wide-moat wells fargo worth a look. Morningstar, Inc. https://www.morningstar.com/articles/911365/wide-moat-wells-fargo-worth-a-look.

Goldberg, M. (n.d.). These are the 15 largest banks in The US. Bankrate. https://www.bankrate.com/banking/biggest-banks-in-america/.

Reinicke, C. (2021, July 29). Cryptocurrencies can be a tool for building personal Wealth long-term. CNBC. https://www.cnbc.com/2021/07/27/cryptocurrencies-can-be-a-tool-for-building-personal-w ealth-long-term.html.

Juan Carlos Editor, Carlos, J., & Editor. (n.d.). The Investment of the Decade: Bitcoin vs. World's Megacorps. Retrieved from https://howmuch.net/articles/biggest-companies-vs-bitcoin-last-decade-performance

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